More verbal and visual support needed for the Battle of the Sewing Machines

South Africa 31 October 2010

Treasury concerned about bargaining council & clothing employers keep quiet.

There are indications that some departments and officials within government are concerned about the way the union and the bargaining council is addressing the current battle of the sewing machines. Whilst a determined few Chinese-South African clothing employers battle for the sustainability of South Africa’s clothing sector the rest of the clothing and even the textile sector remains silent and complicit.

Alex Liu, Chairperson of the Newcastle Chinese Chamber of Commerce said in a telephonic interview with The ReDress Consultancy today, that he was disappointed that the clothing union (Sactwu) had not fully acknowledge their goodwill act of implementing their new wage structures.

“This action by the concerned clothing companies in Newcastle demonstrates our willingness to find amicable solutions to the current situation the clothing industry finds itself in and not to wait for December when hopefully a solution to the crisis will be found,” said Liu.

The industry cannot maintain itself at the current agreed wage structures, said Liu and we need the union and the bargaining council to “realize this.” What we are suggesting is a wage structure that will provide space for “small business to grow and to provide productivity output incentives.“ Liu said that the clothing companies in Newcastle were able to provide quality products and reliable turn around. It is the wage structure of this sector that undermines its capabilities.

Both the bargaining council and the union argue that non-compliant companies create unfair competition against those companies that are compliant. We need to excavate what this really means and so far, the union, bargaining council or even the complaint companies can provide no statistical evidence to back this stance.

Commentary from industry insiders say that that the bargaining council and the union are very quick to enforce regulations, however, when it comes to clothing employers asking either the union or bargaining council to investigate labour issues on their behalf they are met with numerous gate keeping tactics. The sentiment by employers is that the relationship with the union and the bargaining council is one sided. “This is a two-way street,” said one employer

The current impasse within the industry has filtered down to the offices of Pravin Gordhan. Two paragraphs imbedded in an article, (Pravin’s social contract, M&G, October 29-November 4, 2010), demonstrates that government is conflicted as to how they are to deal with the clothing wage debate. The article states:

“His officials speak privately about the pressures on Chinese clothing factories in KwaZulu-Natal as a crucial example on which to base a rethink of labour regulations. Workers angrily insisted that their employers be allowed to continue paying below sectorial minimimums rather than lose their jobs. Calls for wage restraint and greater flexibility in collective bargaining agreements … remain central to treasury thinking.”

This echoes what The ReDress Consultancy has been saying ever since the wage dispute began. However, the actions of the bargaining council and even the union reflect very little or no flexibility in their strategy to address the situation. We need more demonstrative leadership from government officials who feel the way both the bargaining council and the union is addressing the clothing sector situation is detrimental to industrial and employment growth. Why do treasury officials have to speak “privately” about this?

It is time that the clothing and textile sector begin to have their voice heard as a collective. We have seen to date very little public interaction or support from the industry for the small group of clothing manufacturers in Newcastle who have taken this ongoing battle to unprecedented levels of engagement. It is cowardly of this sector to not support this determined group of employers whose battle of the sewing machines may result in a new era of labour relations for the clothing sector.

See:
"Losing jobs and alienating people," Times Live, 31October 2010
 "Clothing firms seek new consensus on pay," Times Live, 29 October 2010


Written by Renato Palmi
The ReDress Consultancy
31 October, 2010

The ReDress Consultancy takes part in Action Research Workshop

South Africa

October 2010

The Self Study for Transformative Higher Education and Social Action (SeStuTHESA) headed by Professor Joan Conolly, from Durban University of Technology (DUT) held a series of workshops at DUT on Action Research. World-renowned Action Research practitioner, Professor Jack Whitehead, conducted the workshops. Click here to go to (SeStuTHESA) blog.

Professor Jack Whitehead, used The ReDress Consultancy’s website as an “excellent and one of the best websites I have seen that utilizes social network platforms that engages the audience on a number of social, political, economic and research concepts and actions,” said Prof. Whitehead.

Review what Prof. J. Whitehead says about The ReDress Consultancy’s website.

Click here:

Professor Ahmead Bawa, the Vice-Chancellor and principal of DUT as well as Professor Sibusiso Moyo, also from DUT stated that they supported and endorsed the groundbreaking work and the challenges that Action Research presents to the traditional academic methods of knowledge transfer.

The “Living Action Research Africa Network” was launched at the workshop. A link to this network can be found on The Action Research Network website: Click here. When you enter the site see right bottom of screen for link.

Professor Whitehead explains what Action Research is:

“ In a living educational theory approach to action research and a human existence, individuals hold their lives to account by producing explanations of their educational influences in their own learning in enquiries of the kind, 'How am I improving what I am doing?' They do this in contexts where they are seeking to live the values they use to give life meaning and purpose as fully as they can. The living educational theories of professional educators and other practitioner-researchers usually explain their educational influences in the learning of their students and can also explain their educational influences in the learning of social formations.”

The Methodological Approach of Action Research

Action research is known by many other names, including participatory research, collaborative inquiry, emancipatory research, action learning, and contextural action research, but all are variations on a theme. Put simply, action research is “learning by doing” - a group of people identify a problem, do something to resolve it, see how successful their efforts were, and if not satisfied, try again. While this is the essence of the approach, there are other key attributes of action research that differentiate it from common problem-solving activities that we all engage in every day. A more succinct definition is:

"Action research...aims to contribute both to the practical concerns of people in an immediate problematic situation and to further the goals of social science simultaneously. Thus, there is a dual commitment in action research to study a system and concurrently to collaborate with members of the system in changing it in what is together regarded as a desirable direction. Accomplishing this twin goal requires the active collaboration of researcher and client, and thus it stresses the importance of co-learning as a primary aspect of the research process.”

Several attributes separate action research from other types of research. Primary is its focus on turning the people involved into researchers, too - people learn best, and more willingly apply what they have learned, when they do it themselves. It also has a social dimension - the research takes place in real-world situations, and aims to solve real problems. Finally, the initiating researcher, unlike in other disciplines, makes no attempt to remain objective, but openly acknowledges their bias to the other participants.

Reference:

An overview of the Methodological Approach of Action Research by Rory O’Brien, University of Toronto, 1998

Contradictions, agendas and interpretation of the South African clothing sector

The ReDress Consultancy comments on the power of the media when portraying South Africa's clothing and textile sector.

These few samples of cartoons and media headlines clearly demonstrate the contradictions, tractions and agenda driven policies within South Africa’s clothing and textile sector over the past six years.

These images and texts can be used within the framework of the interpretive paradigm, where media reports and imagery is subjected to the “reception” and “interpretation” of the reader without fully understanding the context.

However, the “subjective human interpretation in the making of the meaning” of these words and imagery when placed in a single collective environment as this series reflects shifts the message from when they were first seen individually.

The collective of text and imagery as portrayed in this example helps to develop meaning and perspective, which may result in the reader changing their initial interpretation of the imagery and meaning of the text.

Furthermore, such a collective of media output helps portray quickly and succinctly a narrative that unravels a complex web of industrial development and policy.

Ref: Professor Ruth Teer-Tomaselli ,University of KwaZulu-Natal
Paradigms of Media Research
12 February 2008

"SAVE OUR JOBS" Say South African Clothing Workers

Comment from The ReDress Consultancy

Finally, the media has noticed the repeated statements by The ReDress Consultancy that the union (Sactwu), the Bargaining Council and the Government need to take into consideration the collective voice of the workers. It is these people whose jobs are in jeopardy and come 2011 they may no longer have a job. It is paramount that the voices of the people are heard and their insight into the current state of affairs taken note of. On the other hand, the affected workers have the right to stand together and make their voice heard in whatever manner or forum they feel is necessary? They cannot and should not stand back and allow the state and industry representative institutions make decisions on their behalf without collective inclusivity (union and non-union members) in the process that is currently taking place within South Africa’s clothing sector.

See commentary from The ReDress Consultancy

The Stitching is on the wall

Are retailers responsible for South Africa’s clothing industry woes?

Sactwu and sweatshops (City Press)

The great apparel debate

SAVE OUR JOBS

A government crackdown on factories that don’t comply with labour and safety laws could cost nearly 10 000 people their jobs.

THOKO Zibula, who supports a family of six including three schoolgoing chil¬dren, earns her living in a Chi¬nese-owned clothing factory in Newcastle. But her future -alongside that of 9 500 other textile workers - is on the line if their factories are closed over a failure to conform to safety regulations and mini¬mum wages.

She is opposed to the clo¬sure of the factories scattered along Albert Wessels Drive at the Riverside Industrial Park on the eastern periphery of the town. While "yes, some are cruel", Zibula says, not all Chi¬nese companies are exploiting their workers.

"These are our jobs. The government is coming to take something from us that they never even created in the first place. Show me government-created jobs in Newcastle," she says.

Two months ago shut¬downs over a failure to pay minimum wages were averted when government offered a lifeline to the clothing manu¬facturers in Newcastle, effec¬tively halting any prosecution until "stakeholder engage¬ments" were completed by the end of December under the auspices of the national cloth¬ing sector bargaining council.

But this lifeline came only after angry scenes at several factories where workers held the sheriff of the court at bay.

Newcastle is the economic hub of northern KwaZulu¬Natal and not only supports its population of 540 000 people, but also surrounding towns and villages via coal mining and clothing income. Yet unem¬ployment stands at about 52 percent.

Sibongile Hlatshwayo, 31,has worked at various Chinese-owned textile factories in New-castle for over a decade.

She is a single mother of two, who also looks after three other children and four adults in a four-room house in Madadeni. While Hlatshwayo lost her job due to tuberculosis in August, she remains opposed to the closures.

She earned R270 a week, well below the R324 minimum wage, but she says it was better than nothing even if it was never enough to take care of her family.

Hours after the Sunday Tri¬bune visited this week, Hlatshwayo's 64-year-old mother, whose pension has been the only family income over the past two months, died.

Hlatshwayo says she hopes to return to the clothing facto¬ries once cured. "If the govern-ment closes the factories, how will thousands of people around here survive?

"I'm one of those. I have been supporting this family since 1997,” she says. "I strongly disagree with the gov¬ernment. Where are we sup¬posed to go if these factories are shut down? The family responsibility has become such a burden."

The tensions over jobs and wages in Newcastle come against the background of almost a million jobs lost dur¬ing the recent recession.

Analysts, commentators and politicians have expressed concern about the number of job losses, which, some econo¬mists say, do not seem to corre¬late with South Africa's eco-nomic performance.

Since 2004, the government has tried to create jobs through its expanded public works pro¬gramme. The initial target of a million jobs by 2008 has now been moved to 4.5 million by 2014.

Last week, Public Works Minister Geoff Doidge said 193 001 opportunities for work were created by June 30 this year - 30 percent of the 642 000 target for this financial year.

Saying the programme was on track, he defended it from criticism that it created only short-term employment over a few months, frequently with¬out prospects of further employment.

But labour federation Cosatu has long been pushing for a more pro-poor, pro-worker rights approach.

In its recent discussion doc¬ument "Growth Path Towards Full Employment", the focus falls on productive employ¬ment opportunities, decent work and a living wage for all South Africans.

And it seems government is also refocusing. In his Budget speech in May, Economic Development Minister Ebrahim Patel - previously the long-standing leader of the Southern African Clothing and Textile Union (Sactwu) - said the new economic growth path would focus on "the labour absorbing capacity of the economy".

He added that recovering jobs lost in 2009 would require better employment creation, decent work opportunities and "better social outcomes".

However, the new economic growth path documents have yet to be publicly released.

For many of the clothing and textile workers in New¬castle, talk of a new employment-focused eco¬nomic policy, like mini¬mum wages and safe working environments,may be just that -that does not put bread o table.

Dudu Mabaso, who works in a Chinese-owned clothing factory', says as much as she wants things to change at her company, closing it is not an option.

"People will revolt aginst closure. It is their source of survival and working for the companies is the only way they can survive. The wages are low, but they are better than nothing," she said.

While some employers have threatened to move to neighbouring countries -Lesotho has become a new home for many in recent years - the Newcastle Chinese Cham¬ber of Commerce and Industry (NCCCI) says it is opposed to exploitation and will not defend immoral labour prac¬tices.

Still, Sactwu recently bestowed the cham¬ber its broken brick award as the worst employer.

NCCCI chairman Chuan-Yi"Alex" Lui points out that South Africa is a tough terrain in which to operate.

"It must be stated that 358 clothing companies in South Africa are being targeted by the bargaining council for not paying minimum wages.

"According to the bargain¬ing council, the worst paying employer in South Africa is not a Chinese company," says Lui.

Lui said workers' wages w e r e deter¬mined by their output and that all employees were aware of this. It was important that the unions, the bargaining council and government understood this system of production.

"You cannot demand much more than what has been pro¬duced," Lui adds.

The chamber chairman is also a councillor. As such, the welfare of Newcastle, known for its clothing and coal indus¬tries, is close to his heart.

He says he talked fellow Chi¬nese and Taiwanese companies out of moving from South Africa.

At last month's Sactwu con¬gress, it emerged that at least 18 291 clothing sector jobs were lost in the past three years to June - most of them in areas where wages were already the lowest.

So low wages seem to offer no guarantee against job losses. And KwaZulu-Natal was the hardest hit.

Sactwu's Chris Gina said the clothing companies in Newcastle pay a machinist between R180 and R280 a week, while the legal minimum wage is R479.10 a week.

Gina says the union's sur¬vey of 13 NCCCI member com¬panies reveals that 12 received non-compliance orders between February and Septem¬ber this year and one case is still pending.

Collectively, the companies owe workers more than R10 million in arrear wages and levies to social benefit funds and the like.

"Five' of these companies have illegally refused bargain¬ing council inspectors access to the workplace, during the com¬pliance inspection proceed¬ings," he adds.

It is such situations that create headaches for the town elders. Newcastle mayor Afzul Rehman said the issue of the workers and the non-compliant factories was a delicate one.

If the 9 500 clothing workers lost their jobs due to factory clo¬sures, Newcastle would plunge deeper into poverty. "I will be straightforward and tell you that as much as we want investors to create jobs, we do not condone people getting rich at the expense of the poor.

"We badly need direct for¬eign investment, but my stance is that such investors should abide by the rules of the land," says Rehman. "It's a juggling act," he says.

Source: The Sunday Tribune

Nathi Olifant

October 24, 2010

An Overview of the Clothing and Textile Industry in Mauritius

By The ReDress Consultancy: Compiled by Renato Palmi
October 2010



The ReDress Consultancy offers promotional, advertising and marketing space on this dedicated page to the Mauritian Clothing, Textile and Fashion industry sector.


If you wish to have an additional platform to market, promote, advertise or develop networks for your clothing, textile or fashion Mauritian based business contact The ReDress Consultancy.


The space is ideal for development organizations, Mauritian government trade and development departments, NGOs, educational and research originated businesses and organizations.


This space is not restricted to the above industry sectors and is an ideal platform for any company based in Mauritius that wishes to promote its services and products to Southern Africa.


The ReDress Consultancy is seeking networking and business developmental opportunities with the Mauritius clothing, textile and fashion sector. We are also seeking network and business opportunities with other businesses, government departments, developmental, educational and NGO based organizations that are situated in Mauritius.

To read our profile click over here.
Our web address: http://www.redressconsultancy.com/




An Overview of the Clothing and Textile Industry in Mauritius

Mauritius is part of the Mascarene island group and is located in the south-western Indian Ocean (20°17S,57°33E), some 855 km east of Madagascar and 1800 km east of the African continent.

It's nearest neighbor is La Réunion, a French " Département d'Outre-Mers", which lies approximately 160 km due west. Mauritius is 1860 sq km in size, including approximately 10 sq km of lakes and has a coastline of 177 km.

The island is almost entirely surrounded by coral reefs. The resulting lagoons are full of marine life and are ideal for diving. Its beaches with fine sands are renowned throughout the world.

Mauritius Economy

Since independence in 1968, Mauritius has developed from a low-income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors.

For most of the period, annual growth has been in the order of 5% to 6%. This remarkable achievement has been reflected in more equitable income distribution, increased life expectancy, lowered infant mortality, and a much-improved infrastructure.

The economy rests on sugar, tourism, textiles and apparel, and financial services, and is expanding into fish processing, information and communications technology, and hospitality and property development.

The government's development strategy centers on creating vertical and horizontal clusters of development in these sectors. Mauritius has attracted more than 32,000 offshore entities, many aimed at commerce in India, South Africa, and China. Mauritius, with its strong textile sector, has been well poised to take advantage of the Africa Growth and Opportunity Act (AGOA).

GDP (purchasing power parity)

$15.94 billion (2009 est.)

$15.61 billion (2008 est.)

$14.82 billion (2007 est.)

note: data in 2009 US dollars

GDP - real growth rate

2.1% (2009 est.)

5.3% (2008 est.)

5.5% (2007 est.)

Population below poverty line

8% (2006 est.)

Labor force

594,000 (2009 est.)

Labor force - by occupation

agriculture and fishing: 30%

construction and industry: 22%

transportation and communication: 25%

trade, restaurants, hotels: 22%

finance: 6%

other services: 25% (2007)

Unemployment rate

7.8% (2009 est.)

7.2% (2008 est.)

The Mauritian Clothing and Textile Sector

(2009 data)

The Textile & Apparel sector represents 42% of the total merchandise exports and earned Rs25,7 billions foreign earnings in 2009.

Based on 2009 census, Mauritius has 200 manufacturing T&C enterprises in operation employing around 50,000 persons focusing principally on the following product lines namely:

• T-shirt / Polo Shirt;

• Bottoms /Trousers (including denim);

• Shirts / Blouses;

• Knitwear (pullovers, cardigans) ; and

• Swimwear & Lingerie.

Structure of the sector

The textiles and clothing sector can be considered as being made up of three categories:

(A) Top 20 companies – 100% export oriented, about 60% of jobs and 80% of exports.

(B) 50 medium size companies – Mixed with some predominantly domestically oriented, some heavily subcontracting dependant and others more exports oriented.

(C) About 130 small companies – 90% domestically oriented.

Mauritian companies have engaged in a new type of business model where market knowledge and emphasis on innovative products and service development are key determinants for an efficient production and marketing of higher value products and services. Trends noted are that volume (qty) has decreased but value has increased over time thus confirming that Mauritius has moved up-market.

Major customers (Past & Present)

Mauritius exports garments mostly to Europe (UK, France, Italy, Belgium, Scandinavian countries amongst others) and USA but the regional market (SADC-mainly South Africa and Reunion Island) is equally important.

Some of the customers that Mauritian companies work/have worked with are:

UK: BHS, Debenhams, Tom Wolfe, Hawkshead, Moss Bro, Jasper Conran, Thomas Nash, Duffer, John Rocha, Top Shop, Burton, Carhartt, Canterbury, Cold Method, Country, Feeling, Devred, Dicks,…

USA: Calvin Klein, Chaps (Warnaco), Lucky Jeans, Tommy Hilfiger, Svoboda, Rocawear, Guess…

Italy: Max Mara, Champion, Please, Sinv, Take Two…

France: Quicksilver, Tony Hawk, Serge Blanco, Gotcha, Roxy & Vetir (Gemo), Naf Naf, Orvis,…

Belgium: JBC, N.V,…

South Africa: Guess, Cerutti, US Polo, River Island …

Logistics

With a modern seaport and a well-developed freeport sector, Mauritius offers a comprehensive range of integrated logistics facilities such as warehousing, consolidation of shipments, customs control, pre-shipment inspection and shipment services.

News Report: February 02, 2010 (Mauritius)

[The] Mauritius Government launched a $100 million strategy to strengthen the manufacturing sector, with the expectation that the Mauritius’s export oriented enterprises which dwindled in 2009 will bounce back this year.

Industry Minister Dharambeer Gokhool said that, due to economic meltdown, export-producing industry narrowed by 0.8 percent in 2009 from 3.6 percent and 8.0 percent growth in 2008 and 2007 respectively.

He also informed the press that, with recovery in the process of global meltdown, it is anticipated that the sector’s performance will perk up in 2010.

Mauritius' export businesses are lead by textile groups, adding up to 65 percent of sector’s total sales, mainly to key retailers of European high street, including Zara in Spain and Britain’s Next and Marks & Spencer.

The global economic dropdown has badly affected Mauritius' clothing factories, compelling them to cut prices to hold on to the market share and also improve demand. A $340 million stimulus package, declared by government in December 2008, primarily focused on aiding grappling textile suppliers.

Gokhool proclaimed that, the government has allocated 3.1 billion rupees for developing a globally competitive industrial sector by 2013, focusing on hi-tech investments and exploration of new markets.

Mauritius no longer has any comparative advantage with regard to availability of economical labour and trade preferences, also the tariff protection policy for local industries has nearly been called off, he added.

In spite of this, manufacturing adds almost 19 percent to gross domestic product, 80 percent of entire exports and provides employment to 26 percent of the island’s labour force, Gokhool remarked.

Reference: Fibre2Fashion (2010)

• Read a report called “The Mauritian Success Story and its Lessons.” Click here for the report.
• Read a 2009 report from the United Nations titled: “Mauritius Facing Up to China.”

This is a summary of the report:

Recent studies of the impact of China’s rise on the economies of sub-Saharan Africa generally find that the resource-rich countries of the sub-continent will gain while those that compete with China in export markets will invariably lose. Mauritius, with no exploitable natural resources, and facing acute Chinese competition in its traditional markets, is a most likely candidate to suffer China’s onslaught. This paper argues that China’s economic rise can benefit Mauritius. Analyzing the impact of China through the channels of trade, aid and investment, we show that preference erosion, not China’s emergence, is to blame for the drastic loss of jobs in the clothing industry. This industry, however, has proved resilient since exports are back on a rising trend. On the other hand, Chinese aid to finance construction and infrastructure projects has been a welcome relief, even when it has been tied to the use of Chinese labour and inputs. The most significant benefits of China’s engagement are likely to occur in the area of investment as China strategically uses Mauritius as a platform to penetrate the African market. Click here for full report.

Information on Mauritius

What is the weather like in Mauritius?

http://www.mauritius-weather.net/mauritius_webcam.htm

Hourly forecast for Tamarin in Black River (Mauritius)http://www.yr.no/place/Mauritius/Black_River/Tamarin/hour_by_hour.html

Google Earth Mauritius

http://wiki.worldflicks.org/mauritius.html#coords=(-20.25618045,57.571106)&z=11

Information on Mauritius

http://www.info-mauritius.com/english/Mauritius-WebCams.htm

News on Clothing Industry in Mauritius. Click here.

Noncompliance in textile sector ‘started a few years back’- SA Labour Minsiter

The ReDress Consultancy is way ahead of South Africa’ labour Minister.

On the 30th August 2010, The ReDress Consultancy wrote that the Bargaining Council and Union (Sactwu) had been challenged before. The fact that the issue about non-compliant clothing companies goes as far back to 2005 is a clear indicator that nothing much has changed in the industry. To read the report by The ReDress Consultancy, click here

South Africa.
Minister Membathisi Mdladlana says he is aware of the problem of certain employers in KwaZulu-Natal and the Free State.

LABOUR Minister Membathisi Mdladlana says he is aware of the problem of certain employers in KwaZulu-Natal and the Free State not complying with the collective agreement of the National Bargaining Council for the Clothing Manufacturing Industry .

Responding in writing yesterday to a parliamentary question on whether he had been informed of reports of unfair labour practices in certain textile companies in KwaZulu-Natal, Mr Mdladlana said the problem of noncompliance in this sector started a few years back.

He said the council recently embarked on a campaign to ensure compliance. It resulted in issuing writs of execution on a number of companies in the Free State and in Newcastle, in KwaZulu-Natal.

“The problem does not involve unfair labour practices as defined in section 186(2) of the Labour Relations Act, but involves payment of wages that are lower than the minimum wages contained in the collective agreement and nonpayment of contributions and levies to social benefit funds and to the bargaining council,” he said.

On whether the government would — in light of some employers indicating they would move to neighbouring countries — offer any special dispensation or government assistance to the affected employees to avoid the loss of jobs, Mr Mdladlana said the government had been involved in a meeting with the parties and affected employees in the Free State, and in two national meetings hosted by the Department of Labour.

“The purpose of these meetings has been to try to find a solution to a complex problem of noncompliance by employers in a sector that has experienced significant job losses due to factory closures, retrenchments and liquidation,” he said.

“In most cases, job losses have been caused by international competition and the importation of clothing from countries such as China.”

The parties had agreed that there would be a moratorium on issuing writs until the end of December. During this time the parties would seek a sustainable solution to the problems faced by the clothing sector.

Trade and Industry Minister Rob Davies recently launched the Clothing and Textiles Competitiveness Programme, aimed at helping the sector upgrade processes and products to be more competitive.

Mr Mdladlana said the government was therefore closely involved in providing varying forms of assistance to the sector and supporting the parties at the bargaining council to find negotiated solutions to the challenges they faced.

Reference:

SAPA

Published: 2010/10/21
Business Day

Report on: CLOTHING AND TEXTILE LEATHER AND FOOTWEAR TRADE SEMINAR DURBAN

By The ReDress Consultancy

The Trade and Investment KwaZulu-Natal (TIKZN) held a seminar on the 14 October 2010. The ReDress Consultancy comments:

INTRODUCTION

One of the most amazing things about seminars and workshops that continually surprise me is the lack of interaction with the presenters from the audience.

Forums like these provide the space for industry stakeholders to engage, deliberate and question government, union and industry representative bodies yet the vast majority of the audience keep quiet. There is always plenty of discussions around coffee breaks and at the lunch tables, but when an opportunity to ask questions arises it is always the same few that ask and probe the presenters in an attempt to excavate and unbundle the complex web that makes up our clothing and textile sector. Why is this so?

The Industrial Development Corporation and its allies are on a marketing drive to drum up support and buy-in of their policies aimed at the clothing and textile sector. Such initiatives are welcomed and much needed, however, I cannot, cynically think that there is another side of the same coin that is unbundling the sector: illegal imports, threatened factory closures, increased imports, labour productivity complexities and agendas and so on. I still feel that there is a lack of a coordinated strategy geared towards reengineering these industry sectors.

It is unfair to lay all of the blame on government and industry bodies when the industry barring a vocal few is unwilling to engage and have their voice heard.

Furthermore, it seems that the industry itself, that is the employers lack any singular voice or cohesion. Maybe it is easier to place the blame and onus on government.

Employers need to take stock of their respective industry sector representative bodies and hold these agencies accountable. Employers who pay membership fees to such agencies must review the mandates, the communication, marketing and strategy direction of these agencies and if need be overall them. Just like the fashion sector that is relatively dysfunctional when it comes to a coordinated synchronized strategy I think our apparel and textile sector seems to suffer the same disjointed strategies when it comes to critical engagement with the various challenges these sectors face.

Presentations

The Industrial Development Corporation (IDC)

Clothing and Textile Competitiveness Programme (CTCP) consists of four schemes:

1. Capital and Technology Upgrading.

2. Preferential Financing Scheme.

3. The Clothing and Textile Competetive Improvement Programme

4. The Production Incentive Programme.

“The main objective of the CTCIP is to create a group of globally competitive clothing and textile companies [and] ensure a sustainable environment that will retain and grow employment levels.” These schemes are in operation until April 2014, while the Production Incentive Programme runs to 2015.

The Department of Trade and Industry (DTI)

The DTI reported about the “Progress on the resolution taken from the Ecnomic and Job Submit,” held in KwaZulu-Natal 2009. To read a report on this conference by The ReDress Consultancy, click here.

The DTI reported that a “task team had been formed between SARS and the DTI.” However, as one business owner said, “When asked in Cape Town who made up the task team,” the DTI could not provide an answer and the feeling was that this is just an “imagined team.”

All government tenders on textiles, clothing, leather and footwear require locally manufactured goods from local raw material.

I wholeheartedly agree with this policy and I am its biggest advocate.

However, there is a loophole when government bodies or winners of government tenders use agents (intermediaries) and then place the blame on the agents.

This occurred in 2009 when it was alleged that ANC T-shirts were found with a “Made in China” label. In response ANC spokesperson, Nomfundo Mcetywa said, “The ANC did not directly purchase its material but service providers did.” To read this story click here.

I hope that all political parties’apparel merchandise is made locally and do not simply screen-print their branding on imports?

Local textile company, Mediterranean Textile Mills, said they have made T-shirts but find it extremely difficult to compete with imported T-shirts that are cheaper and inferior.

Our corporations need to support local textiles when it comes to their promotional garments and promotional companies should be encouraged to use only locally produced products for their clients. The same applies for our local sports teams, like the Sharks whose merchandise is made mostly in China.

The DTI reported they have studied the potential of the South African cotton-value-chain and would be releasing a report on their findings.

KZN Department of Economic Development and Tourism (KZNEDT)

The presenter said their goal was to reduce poverty by 50% by 2014 and grow the economy by 8% by 2014. A further goal was to “assist Cooperatives to penetrate formal markets.” The clothing union and some members of the audience vigorously debated the definition of what constituted a “cooperative”. There was no definitive outcome and the entire debate around cooperatives remains murky.

International Trade Administrative Commission of South Africa (ITAC)

The representative from ITAC said many companies feel “they are uncompetitive because they have to import material or products that are not made or available in South Africa and have to pay duty on these products.”

The presenter said they were under a lot of pressure to reduce customs duties; however, the WTO determines the bound rate.

ITAC said one of their fundamental polices in helping clothing and textile companies is for these companies to be registered with the Bargaining Council.

If there were to be any increase in tariffs for fabrics it would move from 22% to 25% but there would be no tariff increase in clothing. It was agreed that the amount of imported textiles used in local made apparel is high and this is something that needs to be changed.

The Southern African Clothing and Textile Workers Union (Sactwu)

The Sactwu representative said it vital that this industry sector “transforms … especially for women.” The presenter stated that it was a “disaster there is no [little] transformation and it is extremely hard to find black owned companies in this industry sector.” He questioned how companies could take taxpayers money if the industry is not prepared to transform the ownership of factories.

The Sactwu representative was asked who “in their right mind would want to own a clothing and textile company at this juncture when so many are being forced to close due to numerous reasons.” The representative responded by saying that it was not the intension of the union to isolate non-compliant companies and we “wish to show them the benefits and opportunities of being compliant.” Furthermore, he said, “we refuse to embrace an economic model that encourages the exploitation of labour.”

The union according to the presenter will be looking more closely at clusters and cooperatives. More than 69 clothing companies in KZN have closed and reopened as a “cooperative” and these companies employ over 1000 people. “We will shut down illegal cooperatives,” said the union presenter.

The presenter said it was important for government to “involve the union in cooperative development in the rural areas.”

The union official slated SARS saying that they need to be held accountable for the number of illegal products getting through customs.

He stated that the union had a solid belief in the potential of the clothing and textile sectors and we should all take what we have and make it viable. He said the union “Wish[ed] to engage with companies and business owners that are opened minded.”

Conclusion

It is evident from the brief synopsis that meaningful policies remain just paper policies if they are not rigorously enforced. For instance, we have the labelling regulations but as I informed the representative from the Department of Trade and Industry, the amount of apparel products found in retail outlets that contravene these regulations is staggering. I questioned why the DTI have not had any visible enforcement of these regulations. I suggested, besides concentrating on customs, SARS, the DTI and even the Union should do a public display of enforcing these regulations in shopping malls.

We also need to urgently clarify and deal with the interpretation of cooperatives and companies or individuals caught under-invoicing or bringing in illegal products must be named and shamed.

A further suggestion is for all the stakeholders from industry representative bodies, government bodies, the union and the industry itself should come together in developing and implementing a unified campaign aimed at consumers. Such a campaign could be used to educate and inform consumers about the importance of supporting local made products. A collaborative project would create a sense of unity and maybe, just maybe working together on such a project would help in bridging the divide between the various stakeholders

Renato Palmi
19 October 2010

South African men’s fashion starting to strut its stuff

South African men’s fashion starting to strut its stuff

SOUTH African men’s fashion is starting to come into its own even though most local men still prefer to shop from the selections available in retail stores, say fashion designers.

Local designer Fred Eboka says that opportunity is part of the problem: “It seems there are only so many occasions that offer men the privilege of dressing up. And, for the most part, a lot of South African men are not looking for the right fit or shade.”

Eboka says the country’s younger generation are the ones gravitating toward European trends, which include fitted jackets and skinny jeans.

“Those with discerning taste will always stand out. Interestingly, among our black youth, you will find most stylish men on the periphery of the townships.”

Eboka says the demise of the South African tailoring industry is a disappointment: “We used to have the infrastructure to create fine garments, but most companies are simply downsizing now.”

Renato Palmi, a clothing and textile researcher based in Durban, says the men’s clothing market is “relatively small” in South Africa.

“The fashion market for women definitely dominates the local industry. It is evident in the fact that our big retailers generally carry only a limited selection of men’s wear,” Palmi said.

He says that only a small proportion of menswear is sold in boutiques across the country.

“But with an emerging economy and a growing clientele with a discerning eye, this seems to be changing,” says local designer Gavin Rajah.

“Most of our men buy clothing from the mass retailers but in a country with such a strong entrepreneurial spirit a growing need for communicating professionalism through garments has emerged,” he says.

Rajah says that for men “sartorial tailoring is all about the politics of dressing”.

“In business a certain dress code is acceptable and the truth is people are starting to pay attention to the way they groom themselves.”

As evidenced by the GQ Best Dressed Men of the Year awards, the term old-fashioned is not an anachronism for the sartorial choices of the young generation.

Seth Rotherham, a Cape Townbased blogger on GQ’s bestdressed list, says he owns two pairs of GH Bass penny loafers, which can be worn with “literally anything”. His wardrobe assets include a tailor-made black suit, tailor-made shirts from Collar and Cuff and a skinny black tie.

Meanwhile Tyrone Arendse, a Johannesburg-based banker, owns a leather biker jacket that used to belong to his dad. He sees himself as personally responsible for the trend of introducing skinny jeans to muscular men of colour.

GQ editor Craig Tyson says that while fashion is seasonal and cyclical, style is about attitude.

“It’s useful to keep an eye on trends, but a stylish man is no slave to fashion. It’s all about being comfortable with who you are and finding your own look.”

By Florence de Vries

Published on the web by Business Report on October 18, 2010.

© Business Report 2010. All rights reserved.

The stitching is on the wall

The militant statements by Labour Minister Mdladlana that he is “ready for battle “and “the war is not over” and the support for his calling to “criminalise people who do not comply with [bargaining council regulations] the law is a sign that the union will achieve their goal of shutting down all non-compliant companies by the end of year. This “victory” will further disintegrate our apparel industry and turf thousands of people onto the streets resulting in economic suffering for these individuals, their families, their immediate communities and for the country as a whole.

It comes as a surprise that the “employer spokesperson” supports the stance to criminalise “wage thieves” considering the number of non-compliant companies operating throughout the country. The economic situation and the make-up of the industry are different from before 1995 and we need to address the realities we are facing now to find solutions.

Furthermore, there seems to be a coordinated or orchestrated media disinformation campaign by the union and the Bargaining Council against a small number of clothing companies in Newcastle, KwaZulu-Natal. One cannot but surmise that the targeting of these companies has been carefully planned due to the unprecedented media attention they have garnered. The association that it is these companies that are paying below R100 a week is incorrect when the Bargaining Council informed the chairperson representing only 45 Newcastle clothing companies that it was not “a Chinese owned factory paying R90.00 a week.”

If the union and the Bargaining Council find it appropriate to continually associate these clothing companies in Newcastle as culprits of labour exploitation then they should afford the same coverage to all the 385 companies identified by the Bargaining Council as being non-compliant.

The “employer spokesperson” stated, “we have been debating the problems for years …while the solutions are clear.” One would assume that the employer association for the clothing sector has provided not only an outline but also a comprehensive policy document on these solutions to the union and the Bargaining Council. What is the proposed solution?

However, the fact that the Minster of Labour says the companies in Newcastle (again an attack on a minority of factories) were making a “political statement” and the point made by the union that there is no option but to “ forcefully enforce” the council’s decision is evident that the “clear solutions” suggested by the employer association has not been noted.

The only winners in this scenario will be a short-lived victory by the union and the Bargaining Council and a sad realisation that retailers will simply procure even more apparel products offshore.

No one and especially the group of clothing companies in Newcastle is advocating for sweatshop exploitation of South Africa’s labour. What is being called for is a willingness to put aside political posturing and agendas to find an equable solution with all the stakeholders to sustain, develop and grow our apparel sector.

Read the ADDRESS BY THE HONOURABLE MINISTER OF LABOUR, MEMBATHISI MDLADLANA AT THE ANNUAL GENERAL MEETING OF THE NATIONAL BARGAINING COUNCIL FOR THE CLOTHING MANUFACTURING INDUSTRY.  12 October 2010. Click here

13 October 2010

Written by Renato Palmi

The ReDress Consultancy

Cell: 083 943 0235

Email: redresssa@webstorm.co.za

ARE RETAILERS RESPONSIBLE FOR SA’S CLOTHING INDUSTRY WOES?

By Renato Palmi

The ReDress Consultancy

Email: redresssa@webstorm.co.za

Cell: 083 943 0235

10 October 2010

ARE RETAILERS RESPONSIBLE FOR SA’S CLOTHING INDUSTRY WOES?

It is a misplaced perception that clothing retailers are to be blamed for either the current labour and wage disputes taking place in Newcastle, KwaZulu-Natal and elsewhere and for the closure of clothing manufacturers and the subsequent loss of jobs.

The National Clothing Retail Federation of South Africa (NCRF) has conducted reviews of case studies, policy briefs, media commentary and debate within the apparel sector in relation to significant trade and industry realignment in this arena. Its findings reveal that dominant retailers in the value-chain are persistently identified as playing a catalytic role in these disputes. Local manufacturers tend to attribute the retailers’ demand for low cost at source as a factor that hamstrings the viability of local clothing factories, which are required to comply with minimum wage levels set by the National Bargaining Council.

The NCRF, which represents six major clothing retailers, presents an alternative perspective on this scenario. Members of the NCRF contribute less than 50% of sales in the formal sector, with the balance being generated by the informal sector. Research indicates that, driven by South Africa’s socio-economic demographics, the discount apparel sector makes up nearly 80% of the entire market. This profile is linked to income distribution, which ultimately compels consumers to prioritise price as the fundamental driver of their purchasing decisions. Style, colour, print type, the feel of the garment and sizing are subsidiary considerations for this market segment.

Whilst they are committed to supporting the local industry, the NCRF members argue that, as profit-driven businesses, they are required to consider numerous supply chain factors. Sourcing local suppliers must take account of not only price, but also delivery, consistency in quality, reliability and flexibility from their suppliers. For example, only 63% of local suppliers are able to meet stringent delivery deadlines.

These indicators for retailers’ support of local suppliers were clarified at the 2009 KwaZulu-Natal Economic Recovery and Jobs Summit. At this strategic forum, the Natal Manufacturing Association stated that aside from price-consciousness, a significant portion of local clothing manufacturers lacked capacity to implement rapid responses to production requirements, and could not meet a 60- to 70-day turnaround in delivery.

These efficiencies are crucial to securing a competitive edge in the national and global market. In media reports covering the recent turmoil experienced around Newcastle clothing companies, factory owners acknowledge that labour and efficiency issues affect their ability to compete with cheap imports. The challenge of global competitiveness is endorsed by international research that identifies flexibility, reliability, control, labour, pricing and management as critical ingredients for market share.

The ReDress Consultancy in collaboration with Ifashion, a local fashion website ran a poll that asked the following question: “Can the major retailers be blamed for the current state the apparel and textile sector is in?” Just over 52% of the respondents said yes because of their “profit margins on imported goods.” While 23% of the respondents stated that it was government’s “protectionist policies that render the industry uncompetitive,” and 12% said no because local manufacturers “are not competitive or reliable.” A further 12% said the retailers could not be blamed because South African consumers are “happy to pay high prices for cheap quality imported goods.”

The retailers’ commitment to supporting local suppliers was demonstrated in December 2003, with a declaration forging a partnership between retailers and the Southern African Clothing and Textile Workers’ Union (SACTWU) to find ways of enhancing the buy-local campaign. There was agreement then that the apparel manufacturing sector should formulate and apply mechanisms for stable and viable local clothing output.

Both the NCRF and apparel manufacturers understand that mutually beneficial collaboration is essential for the sector’s growth and sustainability, and that it is not merely price that underpins this relationship. Contrary to popular belief, NCRF members hold that it makes more economic sense to support local manufacturers who are geographically convenient and as such, can provide retailers with “quick-to-market” options. This alleviates the risk run by retailers in ordering large volumes from overseas of fashion styles that might no longer be seasonal or “on-trend”, as determined by rapidly mutating consumer demand.

In 2009, clothing and textile manufacturers met with retailers to cement their operational relations and find best-practice methods for retail sourcing of local textiles and apparel. Following from this, the NCRF members have developed excellent working relations with several suppliers who have restructured their production lines to meet international retail standards. This is necessary because consumers are knowledgeable and discerning in their purchasing, and demand good value for money.

The NCRF is concerned by the labour disputes taking place between manufacturers, the National Bargaining Council and the Union, and will continue to observe the situation closely. The longer these disputes continue, the greater will be the negative impact on their business, and retailers may have no choice but to shift their sourcing focus from local to overseas suppliers.

The stakeholders in this wrangle should avoid a short-sighted approach in assessing the damage being done to productivity, the labour force and employment growth. SACTWU’s Andre Kriel expressed this unreservedly at the 2009 KZN Summit, saying that although the demise of South Africa’s clothing industry cannot be contemplated, as the unrelenting loss of jobs is extremely detrimental to our nation’s social fabric, we cannot compete with a country like China, which subsidises its clothing industry.

The recognition that our local manufacturers are not out-performed, but rather out-subsidised, is echoed by the Apparel Manufacturers Association of South Africa (AMASA). However, it is baffling that SACTWU itself is initiating legal action against clothing companies in Newcastle who seek some reprieve from unrealistic wage regulations. It also seems unfair for SACTWU to blame retailers when specific manufacturers are closed down because they are not competitive.

Employment figures for the formal clothing and textile sector vary dramatically, from 57 000 to 200 000 direct and indirect jobs in the clothing sector alone. The industry accounts for 15% of total formal employment, and contributes 6% of output for the manufacturing sector. According to Statistics South Africa, 74 000 jobs were lost in the manufacturing sector between the first and second quarters of 2010.

Stats SA’s Quarterly Labour Force Survey revealed an increase from 24.3% (4.165 million) to 25.2% (4.310 million) in the unemployment rate between the last quarter of 2009 and the first quarter of 2010, with an increase of 11.7 % in earnings paid to employees in the formal non-agricultural sector for the first quarter of 2010, compared to that of 2009. The Survey shows that low worker productivity is the main deterrent to employers’ predispositions towards pay rises, and that legislated wage hikes do not increase worker productivity.

Global research on wage increases highlights that, for long-term macro-economic stability, it is important to keep the growth of real wages in line with labour productivity. The NCRF would urge the Bargaining Council and the Union to revisit their wage structures for the sector to accommodate particular needs in individual cases in terms of geographical location and company affordability.

Exploitation of our labour force cannot be permitted, but these agencies can lead us beyond the quagmire of dogma and into a new vision for the sector that is cognisant of economic realities in both the industry and the country. As a nation with a 25% unemployment rate, the Department of Labour must ensure that smaller manufacturers are not unfairly pressured through larger manufacturers trying to corner production.

The Bargaining Council’s August 2010 list reflects that 43% of national clothing manufacturers are not complying with wage regulations, and that in KwaZulu-Natal – the second-largest base for clothing operations – 54 of 131 known companies are compliant. This profile of wage regulations presents a view of distorted policy effects that undermine productivity and, in turn, the retailers’ ability to support local operations.

The perception that retailers are supporting non-compliant companies is also misplaced. The clothing sector’s value-chain is complex and to some extent, opaque, in that it consists of contractors and sub-contractors. Whilst NCRF members have undertaken to deal directly with compliant companies, it would be wrong to place the onus on retailers to ensure that their suppliers do not sub-contract to non-compliant companies.

Moreover, NCRF members are also competing with the mass of illegal clothing being imported into the country. In 2007, nearly R5-billion in clothing and textile imports from China alone were under-valued. These figures were substantiated by SACTWU, which stated in 2008 that 30% of all clothing sales consisted of illegal imports, resulting in “between 20 000 and 30 000 jobs losses in the clothing sector.” NCRF members have regularly implored the South African Revenue Services and Department of Trade and Industry to reveal the names of companies and even individuals who are illegally importing apparel products so as to monitor their supplier base, but these requests have not been heeded.

This year alone, NCRF members have increased their Rand-spend on local production through companies that have undertaken to up-skill their staff and institute efficient production output. These retailers are eager to continue supporting both larger and smaller companies, but the fragile state of the sector does not inspire confidence.

NCRF members are wholly committed to the local apparel industry and to their role in growing South Africa’s economy. They firmly believe that the apparel sector can realign itself to create viable jobs through high quality and reliable production systems, and remain willing to participate in a communitarian space that allows for open and honest dialogue with all stakeholders to explore achievable and measurable outcomes in this sector.

RESPONSE TO SACTWU’S AWARDING OF ‘WORST EMPLOYER AWARD’ TO NEWCASTLE CHINESE EMPLOYERS

PRESS STATEMENT

Prepared and released by The ReDress Consultancy on behalf of the Newcastle Chinese Chamber of Commerce and Industry
Date: 5 October 2010
The ReDress Consultancy:
Cell: 083 943 0235
Email: redresssa@webstorm.co.za
Web: http://www.redressconsultancy.blogspot.com/

Mr. Alex Liu: Cell: 083 7758329

Newcastle Chinese Chamber of Commerce & Industry


RESPONSE TO SACTWU’S AWARDING OF ‘WORST EMPLOYER AWARD’ TO NEWCASTLE CHINESE EMPLOYERS

We acknowledge the “award” that the Southern African Clothing and Textiles Workers’ Union bestowed upon the Newcastle Chinese Chamber of Commerce at their 11th National Congress, which was recently held in Cape Town. However, we are disappointed at the way the press statement released by Sactwu on 26 September 2010 has branded Chinese-South African’s in a negative way that further polarizes South Africa’s diverse ethnic population.

We feel that it is imperative to respond to some of the accusations made in Sactwu’s press statement of 26 September 2010. To brand the Newcastle Chinese Chamber of Commerce as “employers who break down, not build decent work in the clothing industry” is inaccurate. Throughout the entire process of talking to and negotiating with the Bargaining Council and Sactwu, which only began in late August of 2010 we have been transparent, honest and have continually stated that we wish to find an equable solution for employers, employees and for the South African clothing industry.

Our involvement in the clothing industry has created much needed employment in Newcastle. The Chinese Chamber of Commerce has 115 members with only 45 members being involved in the clothing sector representing approximately 2500 workers not the “4000” stated by the union. We believe the union has got its facts confused as they had initially engaged with the Newcastle Chinese Clothing & Textile Association in September 2009 and not with our chamber. It must also be stated that there are currently 358 clothing companies in the whole of South Africa that are targeted by the Bargaining Council for not paying minimum wages. According to the Bargaining Council, the worst paying employer in South Africa is not a Chinese company.

At our initial meeting with the union, we placed on record our willingness and intention of creating a ‘disciplinary committee’ that would have external moderators and evaluators to ensure that our members comply with the outcome of the current negotiations. When we discovered that members of the Newcastle Chinese Clothing & Textile Association were paying unacceptable wages, we immediately distanced ourselves from them. Subsequently, all negotiations with the Bargaining Council and the union by the Chinese Chamber of Commerce have been only for its members and no other party. We have however joined other employer associations in South Africa to submit a new wage proposal to the Bargaining Council as was requested by the Department of Labor.

We are perturbed when the union states in its press release, “employment creation in the clothing industry cannot be based on slave wages.” First, there needs to be a clear definition by the union to the meaning of “slave wages,” and secondly we have never had any intention to exploit Newcastle’s community. We have stated the various reasons why we cannot afford the current legislated wages and these reasons have been widely published in the media. In this regard it must once again be mentioned that more than half of all the companies registered with the Bargaining Council do not pay the minimum wages. This is a sure indication that the whole wage structure of the clothing industry in South Africa is wrong.

We are perplexed with the union’s accusation that “clothing sector member companies of this Chamber pay a machinist between R180 and R280 a week.” According to our information, our members are paying between R250 and R550 a week for a qualified machinist. We would like the union to please provide us with the evidence as to where they got those figures and to identify the factories so that we can confirm if the companies that the union accuses are members of our Chamber.

We would also like to dispel the misrepresentation the union has placed on the Chinese community in Newcastle that we are only here to exploit the local workers. A large number of our members are South African citizens and we have shown our commitment to our country by trying to keep our factories open under extremely difficult conditions and thereby assisting in job creation and poverty alleviation. Over the past three years, our members have also engaged in a number of Corporate Social Responsibility projects.

• In 2008 one of our members assisted in the upgrading of Newcastle’s traffic lights by donating 154 LED traffic lights.

• Our Chamber has donated 10 PCs to schools and a NGO in the community.

• Sponsored our local SAPS Christmas parties for police widows and orphans and continue to provide our local police force with food parcels for them to distribute to our community.

• In 2009, our members gave donations to Amitofo Care Centre, which cares for more than 350 orphans.

• Our temple has donated more than 150 wheel chairs to a Newcastle based school for the disabled.

• The annual Dragon Festival, which is celebrated by the Chinese community, attracts many visitors, which in turn provides income-generating opportunities for the business community of Newcastle.

• The Chinese Tzu-Chi Foundations assists with food parcel deliveries within our community. During May and June this year, the Tzu-Chi Foundation distributed more than 1000 food parcels.

• In August this year, one of our members won the ‘Productivity Award’ for the KwaZulu-Natal region and will be going on to compete for the national award in October.

• We have plans to build a kitchen and fence for Ncandu combined school.

Are these the actions of a community that intends to exploit South Africans? As a community, we are, extremely aggrieved that the union has unfairly discriminated against our Chamber and its members.

Our intentions and those of our members is to find an equable solution to the current impasse over reasonable wages considering the extremely difficult and challenging environment we are faced to operate in. The South African clothing sector has seen the closure of dozens of factories and the loss of thousands of jobs over the past few years. Can the union, the industry, the country and South African people afford further losses because of the inflexibility of finding a solution around a marginal difference in wages?

Furthermore, if our members are forced to close or even relocate to other African countries can the union guarantee that their members who will join the ranks of the unemployed be able to find new employment within the sector. -ENDS-

Messages of support
 
4th October 2010

Dear Alex

The Newcastle Sakekamer Exco discussed the challenges facing the Newcastle Chinese Chamber of Commerce, our sister chamber in NBU (Newcastle Business Unity), at length at our last meeting. It has been unanimously agreed that the NCCC has played an important role in the creation of jobs in our town where we face 54% unemployment according to figures provided by the Local Municipality. We appreciate the role that the NCCC play in our community and your assurance that all members are willing to commit to a sustainable wage structure that will ensure job security in our town is appreciated and you can rely on the full support of the Newcastle Sakekamer.

We also acknowledge the role that the NCCC play in the upliftment of our communities and your generous contribution towards community based projects and organisations is noted. We realise that extra effort was put in during the past few years to change negative perceptions of the broader community towards the role of the NCCC members and it is a pity that the press release of SACTWU could undo a lot of hard work done.

We wish the NCCC the best in your deliberations and trust that an amicable solution, in the interest of all parties and within the ambits of the LRA and BCEA will be found.

Kind regards
Ben Chowles
President, Newcastle Sakekamer 2010/2011
Mobile: +27 83 656 1535
Fax: +27 34 312 1555
ben@newcastle.co.za

5 October 2010

The Newcastle Chamber of Commerce and Industry (NCCI) will request SACTWU to retract it’s labelling of the Newcastle Chinese Chamber of Commerce and Industry (NCCCI) the “worst employer”. We believe such actions do nothing to address the very serious issues currently being experienced. We also recognise the numerous initiatives taken by the NCCCI towards uplifting the Newcastle community and thereby bettering the lives of all our people.

Further unemployment created by the closure of factories in and around Newcastle will have a massive impact on the already strained local economy.

Furthermore, the NCCI welcomes the sanction/reprieve by the Economic Development Minister to keep the factories operating until end December.

The NCCI acknowledges that a proposal has already been made to SACTWU by the NCCCI, KZN CMT Forum, Free State Clothing Manufacturers Association and the Apparel Manufacturers of South Africa.

We implore all stakeholders to engage objectively and finally present a new sector accord which will have addressed the needs of the Employers, the Employees and the Communities in which they operate.

John L McGregor
President